Eicher Motors Q2 Results Preview: Royal Enfield maker likely to clock 42% jump in PAT as margin improves

Eicher Motors shares gyrated in a tight range around the flatline on Friday as investors awaited the auto major's financial results due later in the day. The stock was last seen trading 0.3 per cent lower at Rs 3,531 apiece in afternoon deals on BSE, having see-sawed in a Rs 46 range, between Rs 3,504.1 and Rs 3,550, in intraday trade.

Eicher Motors, the parent of motorcycle manufacturer Royal Enfield, is widely expected to report a strong set of earnings for the July-September period. 

According to Zee Business research, Eicher Motors is likely to report a consolidated net profit of Rs 930 crore for the quarter ended September 30, 2023, an increase of 41.6 per cent compared with the corresponding period a year ago. The analysts estimate its quarterly revenue to grow 15.1 per cent on a year-on-year basis to Rs 4,050 crore. 

The auto major is expected to register a year-on-year increase of 26.6 per cent in earnings before interest, taxes, depreciation and amortisation (EBITDA) to Rs 3,519 crore for the fiscal second quarter, according to the research. 

Zee Business analysts peg the company's margin for the quarter ended September 2023 to come in at 25.7 per cent, up 240 basis points (bps) compared with the year-ago period. They estimate Royal Enfield's sales volumes to increase 10.4 per cent to 2.29 lakh units, driven by the Hunter motorcycle and easing of supply chain-related issues, with a 6.4 per cent rise in the motorcycle maker's realisations to Rs 1,73,900 per unit. 

Investors will closely track the company's commentary on new launches and its export market outlook. 

According to brokerage Sharekhan, which has a 'buy' call on Eicher Motors with a target of Rs 3,855, the auto maker is estimated to register a 45.3 per cent increase in net profit to Rs 954 crore and growth of 16.3 per cent in revenue to Rs 4,094 crore for the fiscal second quarter. 

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